There are a number of indicating factors that lead people to believe that Diageo is in a buying state of mind. For one thing, it has little debt. It has gaps in its portfolio - namely tequila (since it doesn't own Jose Cuervo) and bourbon (aside from Bulleit). And Diageo is currently in negotiations with the Beckmann family concerning their Cuervo distribution agreement that it up in 2013. Recall Diageo chief Paul Walsh said days ago they at least want a stake in the brand or full ownership.